By Andy Sambidge
New report says rental values unchanged in emirate after 6% slump in previous quarter
Rents in Sharjah stabilised in the third quarter of 2012 after seeing falls averaging six percent in the previous quarter, Asteco said on Tuesday.
Asteco said the rental declines in Q2 were primarily a result of stricter accommodation rules introduced by the Sharjah government.
"The new regulations require tenants living in Sharjah to share their accommodation with other members of their immediate family only. This forced many tenants who had previously shared with friends or colleagues, to move to smaller more affordable units, prompting a decline in rental rates, especially for larger apartments," said Elaine Jones, CEO, Asteco Property Management.
The commuter belt of Al Khan (Mamzar) and Al Nahdah which were the least affected rental markets in the first half of the year, along with the sought after Corniche and Mina Road areas, recorded the highest rentals rates in Sharjah ranging from AED43,500-54,000 per annum for three-bedroom units.
Asteco said villa rental rates in Sharjah were also largely unchanged in Q3.
Its report said rental rates for three-bedroom properties in Al Khan (Mamzar), Shargan and Al Quz remained in a range from AED70,000-77,500.
Asteco added that the office market remained sluggish with a lack of demand from existing tenants that are established in their existing premises and reluctant to move.
There was also limited interest from new and existing companies located outside of the emirate, the report said.
"The outlook for the Sharjah property market is positive though, with a number of government initiatives including tourist projects such as the Al Hafya Educational Reserve Centre and new project launches in the form of a 6,500 house neighbourhood at Zubair, which are likely to stimulate the economy and improve the demand for housing," said Jones.
Elsewhere in the Northern Emirates, the listless property trend continued with little movement in Ajman, Ras Al Khaimah, Um Al Quwain and Fujairah.
However, the launch of the Fujairah oil pipeline, which carries oil from Abu Dhabi to Fujairah port, eliminating the need for tankers to travel through the Straits of Hormuz, is expected to boost the local economy, generating jobs and potentially creating additional demand for housing.